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  3. the following is the statement of financial positi

The following is the statement of financial position (balance sheet) of Banabas and Kelvin, who...

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Accounting

The following is the statement of financial position (balance sheet) of Banabas and Kelvin, who are
carrying on partnership business as on June 20,2018. Banabas and Kelvin share profit in the ratio 2:1.
Statement of financial position as at 30 June 2018.
Portia is admitted as a partner on the date of the statement of financial position on the following terms:
1. Portia will bring in P1,000,000 as his capital and P600,000 as his share of goodwill. The new profit-sharing ratio will be 4:2:1 for Banabas, Kelvin and Portia respectively.
2. Goodwill will be maintained in the books.
3. Plant and machinery is to be appreciated to P1,200,000 and the value of Land and buildings is to be appreciated by 10%.
4. Inventory is found to be overvalued by P50,000
5. A provision for doubtful debts is to be created at 5% of trade receivables.
* Prepare the: i) Revaluation account [4], ii) Partners capital accounts [8], and iii) Statement of financial position of the constituted firm after the admission of Portia [8].
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calculate the missing values: